Home Business Insurance
Save money with Direct Line for Business. We guarantee to beat any quote for the same cover. Immediate quote available. Find out more

Home working guide for business owners and their employees

print  e-mail 

Working from home is becoming increasingly popular, and it’s not just the big corporates who are offering their staff the chance to work away from the office.

Changes in the law mean that employers are now legally obliged to consider seriously flexible working (for example, working from home or from different locations, working flexible, or staggered hours) to some employees, namely those with a child under six, or a disabled child under 18, or a carer of a dependent adult.

While some companies may see the flexible working laws as constricting their business, it can actually be a very positive thing to offer employees. It can lead to more efficient use of time, by cutting out the daily commute; it is often considered to be a perk by the employee (which could be a less expensive alternative to a pay rise); and it can reduce the overhead cost for an employer – which can be draining for a small business.

Is your business suitable?

Firstly, you should assess whether your business is suitable for offering home working. The areas that tend to work best are sales, marketing and customer services – anything that is phone-based; jobs that can be done with remote access, such as IT support, or training; writing or research-based jobs, such as copywriting, editing, and research; and some administrative and finance jobs. There are even a growing number of ‘virtual’ PAs these days.

Personality types

Then, consider personality type. Time management skills, self-motivation, discipline and basic IT skills are critical to any home worker. Sometimes, business owners have to look closely at their own behaviour, too – if you are going to let people work from home, you have to trust them to get on with the job, giving you regular updates, but not micro-managing them. This can require a cultural shift for some managers, or business heads.

Physical requirements

There are physical requirements for a home office that you should consider. A home office should have a work space and a reasonable working environment; and somewhere secure to keep any confidential information. Don’t forget that you are still liable for your employees, wherever they work, so you should ensure that the have up-to-date security both in their home and on their PC.

If you are setting up a home office for an employee, you are responsible for making sure that it complies with health and safety regulations. Either you or the employee should carry out an assessment of the home office, that includes: safety of the electrical equipment used; seating and layout of the PC workstation; adequate lighting, ventilation and temperature; and checking for obvious safety hazard such as trailing cables. You should give the home worker your feedback, and advice on health and safety, and keep a record of what has been done.

Your home worker should have a business telephone line and a PC / printer (or whatever equipment is required to do the job).

Remember – your home worker is employed by you - not self-employed – so you are still responsible for their working conditions.

You should also check your business insurance policy – make sure you are covered for home workers and their equipment. Business equipment at home is not usually covered under the home worker’s home contents insurance.

Stay in touch

Make sure your home worker doesn’t feel isolated, or cut off from the rest of the office. Keep in regular phone contact, and arrange face-to-face meetings occasionally.

Use technology for successful home working

Technology developments mean that often an employee can work from home without your customers noticing. Most telecoms operators will re-route calls if you want to use a landline and intranets mean that you can keep everyone up to speed with company news and information.

Hosted databases, and remote access solutions mean that you can keep your home worker connected with email, databases and office files. Again, make sure that you provide proper Internet security to protect your information, and your hardware, from unauthorised access, or attack.

Check your employee contract

You may need to change it if the original contract specifies your office as the place of work, or if there are other material changes to the job. Most likely, you will be able to draft a modification to the existing contract, that both you and the employee agree and sign.

Make sure you are clear on terms, such as what is company property, what the company will pay for (such as telephone lines) etc, and any changes to pay, hours, and holiday. This letter should also state that the employee agrees to comply with health and safety regulations. It is important that both parties agree, so that the employee doesn’t feel pressured into changing their working conditions (as this could lead to a charge of constructive dismissal).

Home working benefits

The benefits to employers can include: better productivity and efficiency; more efficient use of time; reduced levels of sick leave; and being able to offer a low-cost benefit to potential and existing staff.

Potential pitfalls

You need to make sure that you stay in touch with your employee – it may sound obvious, but it can be easy to lose control over what they are doing. Make sure you have regular meetings and telephone updates. Equally, you need to make sure that your employee doesn’t feel isolated and loses motivation. Make sure they are included on training courses, so they don’t lose skills; and set clear goals and objectives, that are reviewed regularly.

About the Author

Article written for Bytestart readers by Emmett Kilduff, CEO, cmypitch.com. For more information for small businesses on home working, and other business issues, see www.cmypitch.com.

Latest articles in Home Working
 
Work from Home - Home Office Insurance Guide
2.1 million businesses are run from home, with another 1,400 starting each week. It can be a great low-cost way to start your business but working from home can invalidate your existing insurance polices. Here's our guide to making sure your home-based business is adequately insured. [August 13, 2010]
 
Eight steps to becoming a 5 to 9'er
There are an estimated 5 million people 'five to nine-ers' in the UK and this week, Emma Jones has launched a new book to help many more follow in their footsteps. [May 11, 2010]
 
The secrets of work-life balance: work smarter, not harder
Work is entering our homes and private lives far too often, changing our balance and natural working equilibrium. Here are 10 ways for you to improve your work-life balance. [April 20, 2010]
 
Present a professional image while working from home
Thanks to modern technology and a growth in services to help home workers, it’s really easy to present a professional image without a great deal of effort or cost. [June 4, 2009]
 
Running a home business - 10 tips to help get the balance right
With over 3 million people now working from home, and the number growing daily, here are ten tips to help potential homeworkers get the balance right and prevent themselves getting distracted. [May 18, 2009]
 
New survey launched to mark National Working from Home Day
To mark National Working from Home Day, the Telework Association has launched its first annual survey which examines the apparent improved level of productivity of home workers. [May 15, 2009]
 
How to successfully start a business in the evenings
Thanks to modern technology, it is easier than ever to launch your own business while still working full-time. Some issues to consider if you want your business idea to succeed. [May 6, 2009]
 
5 million setting up new businesses after performing 'day jobs'
New research shows that over five million people are working from home after finishing their 'normal' day jobs. You can also download a copy of 'how to start a business in your spare time'. [April 21, 2009]
 
Tax tips for home-based businesses
The economic downturn could lead to a surge in business owners working from home. We look at the tax relief available, including mortgage interest relief, rental, council tax, insurance and other bills. [March 23, 2009]
 
Typical expenses if you work from home - and what tax pitfalls to watch out for
A leading accountancy body is urging homeworkers to claim tax relief on all the valid expenses they can, but they should also be aware of the VAT pitfalls. [February 18, 2009]
 
Working from home - five pitfalls you must avoid
Many business owners who start up from home may have encountered 'cabin fever'. Here are five simple things you can do to ensure you can focus on your business, and still maintain a healthy home life. [February 10, 2009]
 
Keys: take care with your spares
If you can’t remember who’s got spare sets of your keys, you could be invalidating your insurance. [December 1, 2008]
 
Working from Home - How to stay organised
If you work from home, one potential area of stress can arise when your paperwork has been left to the last minute, or seems out of control. Here are some tips for keeping on top of your small business administration. [December 1, 2008]
 
Working from home - have you claimed tax relief on your expenses?
Tax relief is available for additional expenses incurred by people working from home. A leading accountancy body is encouraging homeworkers to claim all the tax reliefs they are entitled to from HMRC. [October 28, 2008]
 
Setting up a Home Office - The technology basics
When starting a home office it is important that you have the correct equipment and conditions to work safely and effectively. This guide explores these issues further. [September 23, 2008]
 


Click Here

Our Partners
Key Services
Key Services
Useful Guides
Click Here